The Market for Soccer Players in England after Bosman: Winners and Losers

The Bosman judgement has changed the types of employment contracts which football clubs can write with players. This chapter analyses the effect of this on the equilibrium of the English football leagues. The English leagues are characterised by open entry and consequently intense competition in an economic as well as a sporting sense. While technology is expanding the size of the entire football market, the market for players is approximately efficient so that most of the football “rents” go to the players. If clubs already wrote contracts which were economically efficient, then Bosman would not affect the football league equilibrium. However, if some clubs are unable to write efficient contracts because of capital market constraints, then these clubs may be driven out of the market. The judgement is also likely to redistribute the rents among the players. The chapter discusses the financial impact so far using accounting data.